ACTION ALERT: Stop USDA Loans for the
Construction of New Factory Farms

Call U.S. Secretary of Ag Tom Vilsack Today

10/30/09
BACKGROUND: Last week, more than 25,000 Americans signed a letter from the Campaign for Family Farms and the Environment (of which LSP is an active member) calling on Secretary of Agriculture Tom Vilsack to suspend issuing direct and guaranteed loans for the construction of specialized hog and poultry facilities. Many of these loans go to finance huge corporate-backed factory farms. Despite this clear demand, the USDA’s Farm Service Agency (FSA) is continuing to provide loans to build new hog and poultry facilities. This will expand production at a time when overproduction in these sectors is greatly depressing prices, leading to contract cancellations, abusive contract terms and further corporate consolidation.

When similar oversupply situations occurred in the past, USDA suspended the use of loan programs for the construction of these specialized facilities to ensure that they did not continue to contribute to the detrimental impacts of severe overproduction. Specifically, USDA issued a directive on January 8, 1999, suspending all direct and guaranteed loan financing for the construction of specialized hog facilities, citing concerns that FSA loans could exacerbate the crises of oversupply and low prices that were affecting the hog industry. The loans were re-instituted by the Bush Administration shortly after it assumed office in 2001.

Why is this Administration continuing the failed pro-factory farm policies of the previous Administration? 

Issuing these USDA loans at this time of extended low prices has the effect of choosing “winners” (mega-operations that are expanding with new contract growers) at the expense of existing contract hog and poultry growers and independent hog farmers. These loans provide public financing for factory farm investors’ strategy of expanding and seizing market share when prices are low. Meanwhile, existing hog farmers and poultry producers are being forced to cut back on their herds and flocks to stop losing money and to correct the market. We’ve seen it all before, and so has USDA. To continue issuing these loans is to favor corporate-backed factory farms over family farm producers.

Tell Vilsack:  Suspend USDA loans to specialized hog and poultry facilities now. Support America’s family farms, not new and expanding factory farms.

Call Secretary Vilsack today at 202-720-3631, and leave him a message. If you raise hogs or poultry, say that. But this affects all of us, so wherever you live and whatever your occupation, call Secretary Vilsack today. Tell him:

“Public funds should not be used to support the expansion of the biggest hog and poultry operations to the detriment of existing family farm producers. That’s bad for our country. And public funds should not be put at risk by building new production facilities at a time of massive overproduction and low prices. That’s bad policy. Suspend the loans now. Do what the people need, not what the agribusiness lobbyists want. And do it now, while it can help make a difference. No more delays.”

For more information, go to http://www.landstewardshipproject.org/pr/09/newsr_091020.htm or call the Land Stewardship Project at 612-722-6377 and ask for Adam.

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